Stocks traded lower on Friday as earnings and economic data leaned toward the downside.
The S&P 500
(INDEXSP:.INX) went as low as 1839.89 in early trading and rebounded to 1846.04 midday before falling back down to finish 0.4% lower at 1838.69. Ultimately, it was a continuation of the post-New Year grind following the market’s huge 2013 run that took many a bear by surprise.
Semiconductor giant Intel
(NASDAQ:INTC) fell 2.6% to $25.85 after reporting earnings on Thursday afternoon. Intel reported in-line revenues, but its earnings and forward revenue guidance underwhelmed investors that had driven the stock up 4% this week before the report, and up 13% from its December 2013 low.
(NYSE:GE) sold off 2.3% despite an overall in-line report. The action looked like a sell-the-news reaction after the stock staged an impressive rally into year-end.
(NYSE:UPS) also disappointed, lowering fourth-quarter earnings guidance this morning after being caught off-guard by a back-end loaded holiday shopping season. The stock fell 0.6%.
Japanese video game giant Nintendo
(OTCMKTS:NTDOY) also guided down, citing weak sales of its Wii U console and driving a big dip in its share price.
However, earnings news wasn’t all bad. Investment bank Morgan Stanley
(NYSE:MS) staged an impressive rally after reporting fourth-quarter results that were above consensus. Fellow financial SunTrust Banks
(NYSE:STI) also beat expectations and shot higher.
And shares of momentum king Twitter
(NASDAQ:TWTR) rose 2.7% to $62.20 after brokerage firm Stifel initiated coverage with a Buy rating and $75 target price. Additionally, the stock was boosted be a news report indicating that Twitter was developing an e-commerce platform.
There was also a decent amount of economic data today.
December 2013 housing starts were slightly better than expected at 999K, while building permits disappointed at 986K. December industrial production was in line with expectations with a 0.3% increase. December capacity utilization was fractionally ahead of consensus at 79.2%. And finally, the January University of Michigan Consumer Confidence survey came in at 80.4, which missed the 83.5 that Wall Street had forecast.
The so-so earnings and economic numbers drove the 10-year US Treasury yield down slightly to 2.83%, nearing the 2.819% low for the year seen last week.
Tomorrow's Financial Outlook
The market will be closed on Monday in observance of Martin Luther King, Jr. Day.
On Tuesday, we’ll see a large number of earnings reports. Big names include Delta Airlines
(NYSE:DAL), Johnson & Johnson
(NYSE:JNJ), and Verizon
(NYSE:VZ) before the open, and IBM
(NYSE:IBM) and Texas Instruments
(NYSE:TXN) after the close.
We’ll also have some economic data. At 8:30 a.m. EST, December 2013 retail sales and import/export prices data will be reported. Those reports will be followed by the November 2013 business inventories numbers at 10:00 a.m.
No positions in stocks mentioned.
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